General Electric Net Drops 44%

The industrial conglomerate reports a decline of 44% in fourth-quarter earnings and said it remains committed to its dividend.

General Electric ( GE) shares fell almost 12% Friday, after the conglomerate posted a 44% year-over-year decline in net income.

GE reported fourth-quarter net income of $3.7 billion, or 35 cents a share, which included $1.5 billion of after-tax restructuring and other charges, vs. $6.7 billion, or 66 cents a share, a year earlier.

Earnings from continuing operations in the quarter were $3.9 billion, or 37 cents a share before preferred dividends, down 43% from $6.8 billion last year. Including preferred dividends, GE earned 36 cents a share from continuing operations in the quarter, down from 68 cents a share a year earlier, the company said Friday.

Analysts surveyed by Thomson Reuters expected the industrial conglomerate and component of the Dow Jones Industrial Average to report earnings of 37 cents a share.

Shares fell as much as 11.9%, but closed down 10.8% to $12.03.

The company said segment profit fell 25% in the fourth quarter on a 67% decline at capital finance.

Should GE stay with its plan to pay a dividend of $1.24 a share this year?

Yes. The dividend is safe, and the company can afford it.The smarter move would be to lower the dividend amount.No. Eliminate the dividend and preserve funds.